Authentic Brands Group, a $20 billion private‑equity‑backed holding company, has turned once‑iconic labels into licensing cash cows. After buying Brooks Brothers out of bankruptcy in 2020 for $325 million and snapping up Eddie Bauer’s trademark, ABG stopped controlling design or manufacturing, instead collecting royalties from third‑party producers and sidesteps traditional supply‑chain responsibilities. The model lets the firm profit while product quality slips unnoticed.

The shift shows up in the garments themselves. Brooks Brothers now sells a diffusion line, “B by Brooks Brothers,” built on polyester‑viscose blends that replace the brand’s historic 100 % wool, while Eddie Bauer’s recent footwear arrived from a Chinese catalog with no in‑house design or testing. Both changes erode the trust that once justified premium pricing, resulting in shorter lifespans and higher return rates for shoppers.

ABG applies the same playbook to sports and surf labels—Champion, Volcom, Billabong, DC Shoes—and even to media properties like Sports Illustrated, where a licensed partner slipped fake bylines into articles before the license was revoked. By treating trademarks as the only asset worth protecting, the firm guarantees revenue streams regardless of product failures, leaving consumers to shoulder the decline. The approach fuels ABG’s growth while eroding brand heritage.